Accumulated Other Comprehensive Income (Loss)

12 Months Ended

May 31, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

NOTE 13 — ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The changes in Accumulated other comprehensive income (loss), net of tax, were as follows:

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at May 31, 2022	$	(520)	$	779	$	115	$	(56)	$	318
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(91)		487		—		(20)		376
Reclassifications to net income of previously deferred (gains) losses(3)	358		(835)		—		14		(463)
Total other comprehensive income (loss)	267		(348)		—		(6)		(87)
Balance at May 31, 2023	$	(253)	$	431	$	115	$	(62)	$	231

(1)The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.

(2)Net of tax benefit (expense) of $0 million, $(40) million, $0 million, $6 million and $(34) million, respectively.

(3)Net of tax (benefit) expense of $(16) million, $97 million, $0 million, $(5) million and $76 million, respectively.

(Dollars in millions)	FOREIGN CURRENCY TRANSLATION ADJUSTMENT(1)		CASH FLOW HEDGES		NET INVESTMENT HEDGES(1)		OTHER		TOTAL
Balance at May 31, 2021	$	2	$	(435)	$	115	$	(62)	$	(380)
Other comprehensive income (loss):
Other comprehensive gains (losses) before reclassifications(2)	(522)		1,222		—		28		728
Reclassifications to net income of previously deferred (gains) losses(3)	—		(8)		—		(22)		(30)
Total other comprehensive income (loss)	(522)		1,214		—		6		698
Balance at May 31, 2022	$	(520)	$	779	$	115	$	(56)	$	318

(1)The accumulated foreign currency translation adjustment and net investment hedge gains/losses related to an investment in a foreign subsidiary are reclassified to Net income upon sale or upon complete or substantially complete liquidation of the respective entity.

(2)Net of tax benefit (expense) of $0 million, $(114) million, $0 million, $(9) million and $(123) million, respectively.

(3)Net of tax (benefit) expense of $0 million, $11 million, $0 million, $9 million and $20 million, respectively.

The following table summarizes the reclassifications from Accumulated other comprehensive income (loss) to the Consolidated Statements of Income:

	AMOUNT OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME				LOCATION OF GAIN (LOSS) RECLASSIFIED FROM ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) INTO INCOME
	YEAR ENDED MAY 31,
(Dollars in millions)	2023		2022
Gains (losses) on foreign currency translation adjustment	$	(374)	$	—	Other (income) expense, net
Total before tax	(374)		—
Tax (expense) benefit	16		—
Gain (loss) net of tax	(358)		—
Gains (losses) on cash flow hedges:
Foreign exchange forwards and options	26		(82)		Revenues
Foreign exchange forwards and options	581		(23)		Cost of sales
Foreign exchange forwards and options	(5)		1		Demand creation expense
Foreign exchange forwards and options	338		130		Other (income) expense, net
Interest rate swaps	(8)		(7)		Interest expense (income), net
Total before tax	932		19
Tax (expense) benefit	(97)		(11)
Gain (loss) net of tax	835		8
Gains (losses) on other	(19)		31		Other (income) expense, net
Total before tax	(19)		31
Tax (expense) benefit	5		(9)
Gain (loss) net of tax	(14)		22
Total net gain (loss) reclassified for the period	$	463	$	30